August 9, 2013

Investment and Government Institutions

One of the advantages of Philippines in terms of doing business is its large market size. With over 93 million consumers there is no doubt that this country is a good target of consumer goods and services. Despite the potential, many industries are having difficulty of conducting business.

According to the survey of World Economic Forum (WEF), the top hindrances in doing business in the Philippines are corruption, inefficient government procedures, and inadequate supply of infrastructure; take note that corruption is not only rampant in the Philippines but also in other parts of the globe. Resolve these three issues and there will be a big impact in the business climate of the Philippines; there will be an increase in investment and employment opportunities.

As observed, the government is focusing on the said problems. Yet, lots of time is needed to resolve them. Unless those three key issues were not resolved there will be difficulty of generating investment in the succeeding years.

On the positive side, not all regions of the Philippines are affected by problem of corruption and inefficient government procedures; thus more investment will be observed in the provinces with good government institutional management and infrastructure. Inter-local government competition is one of the keys to increase government efficiency.

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