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Building Up Philippine Competitiveness

Building Up Philippine Competitiveness. Ambassador Cesar B. Bautista Co-Chair for the Private Sector National Competitiveness Council Bali, Indonesia November 2007. The Economy. Total Philippine Merchandise Exports. In Billion Dollars 1991-2006. Contribution of Electronics Exports.

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Building Up Philippine Competitiveness

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  1. Building UpPhilippine Competitiveness Ambassador Cesar B. Bautista Co-Chair for the Private Sector National Competitiveness Council Bali, Indonesia November 2007

  2. The Economy

  3. Total Philippine Merchandise Exports In Billion Dollars1991-2006

  4. Contribution of Electronics Exports In Billion Dollars1991-2006

  5. GDP by Industrial Origin1991 vs 2006

  6. Employed Persons by Industry Group 1991 vs 2006

  7. Competitiveness Ratings Global Competitiveness Report (WEF) #77 out of 117 • Macroeconomic Stability • Openness and Market Size • Institutions • Business Sophistication • Good Market Efficiency • Labor Market Efficiency • Financial Market Efficiency • Infrastructure • Personal Security • Basic Human Capital • Advanced Human Capital • Technological Readiness • Innovation World Competitiveness Yearbook (IMD)#49 out of 61 • Economic Performance • Government Efficiency • Business Efficiency • Infrastructure • Doing Business (WB, 2007) • #126 out of 175 • Government Efficiency • Institutions

  8. Executive Order 571 • Issued by President Arroyo on 5 October 2006 • Created the National Competitiveness Council, a Private-Public Task Force on Philippine Competitiveness

  9. Firm strategy, structure & rivalry • Human Resources • Management • Access to Financing • Infrastructure • Transaction costs and flows • Energy Factor Conditions Demand Conditions Related & supporting industries The Determinants of National Advantage “Porter Diamond” Competitiveness Model

  10. Competitiveness SummitSeptember 2006 • Series of Consultations (covering more than 1,000 participants) • Representatives from business, government, NGOs, development agencies, academe ACTION AGENDA

  11. Take-off References • Medium Term Philippine Development Plan 2004 - 2010 • Philippine Export Development Plan 2005 – 07 • National Export Congress Scorecards • Philippine Development Forum • 31st Philippine Business Conference (PCCI) • 2006 National Manpower Summit • 2006 Roadmap for Export Competitiveness of Services Sectors (EO 372, S. 2004) • EO 395, S. 1997 • RA 9013 • EO 428, S. 2005 • ADB Country Report • AmCham Investment Climate Improvement Report • Current Efforts - Services Coalition, Private sector efforts (e.g. PQAF, ECOP, MAP, PCCI, LGU-based initiatives etc.)

  12. National Competitiveness Council • VISION A Competitive Philippines by 2010 Instill Culture of Excellence PPP as the Development Engine • MISSION Implement the Action Agenda with Private Sector Initiatives that Support Public Policies • Competitive Human Resources • Management Expertise in Specific Public Offices • Financing to Micro and SMEs • Reduced Transaction Costs and Improved Transaction Flows • Upgrade Infrastructure (Transport) • Reduced Energy Costs, Secure Supply

  13. National Competitiveness Council • METRICS IN 2010 • Top 1/3 ranking in major international surveys • Total investments at record level (FDI at 3-4% of GDP) • New export services to generate $15B per year

  14. NCC Organizational Structure PUBLIC SECTOR PRIVATE SECTOR DTI Secretary  Co-Chairs  Amb CBBautista DOF, DOTC, DepEd, NEDA Amb DGDee, Amb RRRomulo Dr. FMMacaranas, Mr. Gil Salazar NCC SECRETARIAT Public-Private Sector ED Boy Fulgencio – Mr. Ruy Moreno

  15. Stages of Innovation A IDEA SUCCESS! B INNOVATION + ENTREPRENUERSHIP + FINANCE = SUCCESS!

  16. Competitive Human Resources

  17. Effective Access to Financing

  18. Efficient Public and Private Sector Management

  19. Improved Transaction Costs and Flows

  20. Seamless Infrastructure Network

  21. Energy Cost Competitiveness and Sufficiency

  22. Accomplishments • Easier entry/exit of foreign investors • Reduction of some costs for exporters • Reduced power costs at PEZA for locators. • Aligned private sector corporate projects to help support the increase in proficiency in English, Science and Math among teachers and students. • Aligned private sector corporate initiatives to support a systematic school-feeding program. • Encourage dual tech/OJT initiatives • Private initiatives at infrastructure projects • Training towards model cities by private sector • Training centers for SMEs in PEZA zones

  23. Key Challenges • Effective partnership with Government officials • Strong network of companies, chambers, leaders, NGOs, development partners • Align individual actions to the whole • Project financing outside government • Involve legislators and the judiciary

  24. Government ENABLES. Business DRIVES and goes for GROWTH • Economic growth depends upon the drive of business (the engine of development) • Business, government and society must be linked to achieve goals • Partisanship must be avoided

  25. How Can Businesses Lift Philippine Competitiveness? • Align your projects with the key actions of the NCC • HR: 30% improvement in English, Science and Math by promoting teaching as a profession • Financing: Improve SME capabilities by volunteering to serve in SME Centers

  26. How Can Businesses Lift Philippine Competitiveness? • Work with your local officials to introduce new NCC programs • Introduce the Model Cities Program to your mayors or governors • Advocate for streamlining of business licensing processes in your local governments

  27. How Can Businesses Lift Philippine Competitiveness? • Be actively involved with improvements in infrastructures • Encourage the PPP approach in electricity cooperatives to maximize professional management and commercial operations • Introduce a business approach in allocating scarce resources to key infrastructure projects – such as in tourism development

  28. Competitiveness Begins With You! From: MAGALING ANG PINOY… To: MAGALING ANG PILIPINAS! www.competitive.org.ph

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