PH vaults 10 rungs in world economic freedom rankings

Malacañang on Monday cheered the surge in the Philippines’ ranking among the world’s freest economies, calling it proof of the country’s “continued improvement” in governance.

The Philippines jumped 10 notches in The Heritage Foundation’s 2013 Index of Economic Freedom, from 107th to 97th place, the highest improvement among Southeast Asian nations, presidential spokesperson Edwin Lacierda said.

“We are encouraged by the country’s improvement in the Heritage Foundation’s 2013 Index of Economic Freedom. The Philippines jumped 10 notches in ranking, making our economy the 97th freest in the world with an Economic Freedom Score of 58.2,” Lacierda said in a prepared statement.

The country’s 107th rank last year had an equivalent score of 57.1, he said.

In Southeast Asia, the Philippines posted the highest score improvement of 1.1 points, “setting a trend of continuous growth over the past two years, bringing our country even closer to the world average score of 59.6 and above the Asia Pacific regional average of 57.4,’’ Lacierda said.

The Philippines ranked 17th of 41 countries in the Asia Pacific region while its overall score was slightly below the average, the Heritage Foundation said.

However, countries that scored 59.9 down to 50  in the index, including the Philippines, were grouped under the category “mostly unfree.”

The index was topped by Hong Kong, followed by Singapore, Australia, New Zealand and Switzerland. Rounding out the top 10 were Canada, Chile, Mauritius, Denmark and the United States.

The Washington-based think tank said the Philippine economy had been on a “steady path of economic expansion,” growing at an average annual rate above 4.5 percent over the past five years, weathering the global economic slowdown with a “high degree of resilience.”

It noted that the government had pursued legislative reforms “to enhance the entrepreneurial environment and develop a stronger private sector to generate broader-based job growth.”

“This prominent international evaluation shows continued improvement in the business of governing our country. We take this as an affirmation of the goals we have set out to achieve and a recognition of how far we have come to realize the potentials of our people and country,” Lacierda said.

The Heritage Foundation, however, said that institutional challenges required “deeper commitment to reform.”

While the perceived level of corruption had declined in years, more effective anticorruption measures needed to be institutionalized, it said.

“The inefficient judiciary remains susceptible to political interference and does not provide strong and transparent enforcement of the law, undermining prospects for long-term economic development,” it said.

The Index of Economic Freedom is an annual guide to the “march of freedom” around the world published by the Wall Street Journal and The Heritage Foundation.

The Heritage Foundation also noted that the rule of law in the Philippines remained “uneven” and the legal framework was deficient in independence and efficiency. The “cumbersome” court system and loose regard for contracts continued to cause concern.

“The judiciary is susceptible to political interference. The Chief Justice was removed from office in 2012 after being convicted of corruption,” it said, referring to Renato Corona. “Corruption is a pervasive and long-standing problem in the Philippines.”