Palace blames LGUs for PH rating slide

Palace spokesman Edwin Lacierda: Wake-up call. INQUIRER FILE PHOTO

MANILA, Philippines—Malacañang blamed local government units for the two-notch drop in the country’s global ranking in the ease of doing business, but doubted this would deter investors.

The “Doing Business 2013” report by the World Bank and its investment arm, the International Finance Corp., in which the Philippines’ rank slid from 136th to 138th, was referring to the difficulties of doing business in provincial, city and municipal governments, said presidential spokesman Edwin Lacierda.

“They tackled, for instance, construction permits, business permits. These are mostly actions that we would do or procure at the local government level,” Lacierda told a Palace briefing.

While some LGUs have gotten the seal of good housekeeping, the others should view the drop in ranking as a signal to “improve their services,” Lacierda said.

In the report by the WB and IFC, the Philippines slid down to 138th from 136th in the previous survey because of the lack of significant reforms to fast-track dealings with various government agencies.

The country registered slightly poorer rankings in almost all categories related to the ease of doing business from June 2011 to June 2012, compared with the previous one-year period.

Lacierda said the national government should take the drop in ranking seriously.