Curbing corruption will result in PH economic freedom—report

Continued reforms in the rule of law, regulatory efficiency and governance in the Philippines are the keys to that country’s economic growth, a US think tank report said.

The 2012 Index of Economic Freedom said financial reforms in the Philippines as well as overseas remittances have allowed the country to weather the global financial crisis.

“Further progress, however, is vital in the areas of rule of law, infrastructure modernization, regulatory efficiency, and governance,” the annual report from Washington-based Heritage Foundation said.

The report lauded the efforts of President Benigno Aquino in combating corruption since he assumed office in 2010.

“President Aquino is right to focus on corruption in his quest to reform government, although he will have to do so in an even-handed and productive manner,” the report said.

The Index of Economic Freedom is a series of ten economic measurements created by the Wall Street Journal created the series along with Heritage Foundation. The report defines economic freedom as “the fundamental right of every human to control his or her own labor and property.”

The index scores nations on ten broad factors of economic freedom using statistics from the World Bank and the International Monetary Fund.

In its 2012 report on the Philippines, it stated, “There are other institutional challenges that will require President Aquino to maintain a deep commitment to reform.”

Saying corruption continues to be a serious cause for concern, the 2012 report’s “Freedom from Corruption” indicator showed the Philippines had the lowest score the country received in any Index category. It ranks only 136th out of 179 countries.

“Clearly, corruption is undermining the Philippines’ long-term economic development,” the report stated.

The Philippines Index score was also hampered by several other factors including judicial institutions, which remain susceptible to political interference, it said. Other factors cited were the country’s failure to protect property rights and law enforcement that lacks sufficient strength and transparency.

The report said these “lingering shortcomings” caused the Philippines to lag behind other countries in Asia.

“The Philippines—once home to one of emergent Asia’s more advanced economies—has been eclipsed by its neighbors’ higher rates of economic growth,” it said.

“(But) successful reforms during President Aquino’s term should result in improved scores for the Philippines in future editions of the Index of Economic Freedom,” the report also said.  AJPress