Economic Freedom in the Philippines

The Heritage Foundation recently released its latest report on the freest economies of the world. Of 177 countries, the Philippines ranked 97th worldwide and 17th out of 41 in the Asia-Pacific Region. The countries were ranked according to the following categories: Rule of Law, Regulatory Efficiency, Limited Government, and Open Markets. With a score of 58.2, it was ranked under the Mostly Unfree group.

This data shows how much the Philippines has to catch up to with the rest of the world in providing a better life for its people. Even Cambodia did better, ranked 95th worldwide with a score of 58.5.

It goes without saying that in order for the Philippines to really join the ranks of the world's economic miracles, the following has to be implemented:

1. Eliminate corruption in the government. Billions of pesos are lost each year to corruption, and this causes a strain on the ability of businesses to thrive and to invest further. Corruption also makes goods and services expensive and prohibitive at times to the ordinary Filipino. I once talked to a colleague who owned an apartment and told me that in order to fumigate her apartment as a requirement for renewal of license, she had to pay the fumigating company P 5,000. When she asked why it was expensive, the company said that part of the money will be earmarked as bribes to the regulatory government agency overlooking such things - I think it was the City Health Office.

2. Efficient and independent judiciary. The Philippine judiciary is very slow, inefficient, corrupt and bureaucratic. Judges are appointed based on patronage given by politicians. Hence, they are prone to manipulation and control. The slow and glacial pace of litigation is unbelievable. Cases are decided at times after 30 years.

3. Control population growth. The recent passage of the long overdue Reproductive Law (RA 10354) will hopefully put a lid on the high population growth rate of the country relative to its ASEAN neighbors. Indeed, the chronically high population growth of the Philippines saps economic growth and creates a social strain as jobs are scarce, few and far-between. This feeds the proliferation of homeless, uncared for and malnourished children that is visible and rampant in cities across the Philippines. The strain this phenomenon puts on an already weak and inefficient government bureaucracy ensures that such street children remain outside the core of society and prone to exploitation by criminal organizations. The dearth of jobs, quality at that has forced millions of Filipinos to work abroad, breaking families and straining the social fabric. As if this is not enough, the obstructionist tactics of the powerful Catholic Church virtually locks the Philippines in a perpetual cycle of poverty.

4. Improve education. Education must be redirected to focus on the STEM subjects (Science, Technology, Engineering and Math), elementary and high school teachers must be incentivized to pursue graduate degrees in their chosen fields of study, medium of instruction must be based on the local language up to Grade 3, Filipino from then onwards. English of course will be a part, but it cannot be the only emphasis. Progress also means creating in the people a sense of nation and unity, which will ultimately ensure that we are emotionally invested in our country strong enough to fight for its betterment.

The Philippines has much to do and much to work on, but I believe that the future of the country lies in its people, and rightly so, as it is the people who creates the nation. Therefore, once the Filipino people aspire to greater heights for themselves, then true change and progress will dawn on the country.