ncc presentation april 26 2012

8/2/2019 NCC Presentation April 26 2012

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uCompetitivenessMR. RUY Y. MORENO

NCC DIRECTOR FOR OPERATIONS , PRIVATE SECTOR

National Competitiveness Council Road Show

Cagayan De Oro

26 April 2012


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Competitiveness=

The set of institutions,

policies, and factorsthat determine the

level of productivity ofa country, taking into

account its level ofdevelopment.


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What we compete for

Investments

Trade

Jobs

People

Tourists

Image and Reputation

Brand


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Strategy - Country

Benchmarkagainst key global competitiveness indices

Map each indicator to the agency responsible

Focus on lowest-ranking or easiest-to-fix indicators Working Groups concentrate on specific projects

Link Competitiveness Plan to Philippine Development

Plan, National Budget, LEDAC, Cabinet Agenda

Track city competitiveness and key indicators


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2011 Performance

World Economic Forum GCI +10

IFC Ease of Doing Business - 2

(following a+14

re-rating due to methodology change)

IMD World Competitiveness Report - 2

Transparency International +5

Millennium Challenge Account Pass

Economic Freedom Index +8


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Where we are today WEF Global Competitiveness Report : No. 75 / 142 (2011)

No. 7 of 8 in ASEAN

IFC Doing Business Survey : No. 136 / 183 (2011)No. 7 of 8 in ASEAN

IMD World Competitiveness Report : No. 41/85 (2011)No. 5 of 5 in ASEAN

FutureBrands Country Brand Index : No. 65 / 110 (2010)No. 14 of 17 in Asia Pacific

NATIONAL COMPETITIVENESS COUNCIL


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Our target

WEF Global Competitiveness Report

No. 30 or higher by 2016

IFC Doing Business Survey


IMD World Competitiveness Report


FutureBrands Country Brand Index


No. 2 or 3 in ASEAN in all rankings



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The most problematic factors for

doing business in the Philippines, 2011

24.4

18.3

16.5

7.95.7

5.6

5.6

4.6

2.5

2.2

2.0

1.9

1.9

0.5

0.5

0 5 10 15 20 25 30

Corruption

Inefficient government bureaucracy

Inadequate supply of infrastructure

Policy instabilityTax rates

Crime and theft

Tax regulations

Restrictive labor regulations

Inadequately educated workforce

Access to financing

Inflation

Government instability/coups

Poor work ethic in national labor force

Foreign currency regulations

Poor public health

Percent of responses (weighted totals)


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INDICATORS Ranking (2010) Ranking (2011) Change

OVER-ALL RANKING 85/139 75/142 + 10

1st pillar: INSTITUTIONS 125 117 + 81.01 Property rights 99 105 - 6

1.02 Intellectual property protection 103 102 + 1

1.03 Diversion of public funds 135 127 + 8

1.04 Public trust of politicians 134 128 + 6

1.05 Irregular payments and bribes 128 119 + 91.06 Judicial independence 111 102 + 9

1.07 Favoritism in decisions of government officials 131 118 +13

1.08 Wastefulness of government spending 118 109 + 9

1.09 Burden of government regulation 126 126 0

1.10 Efficiency of legal framework in settling disputes 122 115 + 7

PHILIPPINE COMPETITIVENESS RANKING

WEF GLOBAL COMPETITIVENESS REPORT 2010 & 2011

2010 2010 2011 2011

RED bottom 20% (111th 139th) 25 indicators (113th 142nd) 21 indicators

PURPLE bottom 40-21% (83rd 110th) 37 indicators (85th 112th) 36 indicators

ORANGE

bottom 50

41% (69th

82nd) 20 indicators (71st

84th) 17 indicatorsBLACK (1st 68th) 29 indicators (1st 70th) 37 indicators

111 indicators 111 indicators


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INDICATORSRanking

(2010)

Ranking

(2011)Change

1.11 Efficiency of legal framework in challenging regulations 116 118 - 2

1.12 Transparency of government policymaking 123 120 + 3

1.13 Business costs of terrorism 126 130 - 4

1.14 Business costs of crime and violence 104 112 - 8

1.15 Organized crime 106 102 + 4

1.16 Reliability of police services 105 112 - 7

1.17 Ethical behavior of firms 129 118 + 11

1.18 Strength of auditing and reporting standards 75 62 + 13

1.19 Efficacy of corporate boards 56 52 + 4

1.20 Protection of minority shareholders interests 80 84 - 4

1.21 Strength of investor protection*109 111 - 2


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INDICATORSRanking

(2010)

Ranking

(2011)Change

2nd pillar: INFRASTRUCTURE 104 105 - 1

2.01 Quality of overall infrastructure 113 113 0

2.02 Quality of roads 114 100 + 14

2.03 Quality of railroad infrastructure 97 101 - 4

2.04 Quality of port infrastructure 131 123 + 8

2.05 Quality of air transport infrastructure 112 115 - 3

2.06 Available airline seat kilometers* 28 28 0

2.07 Quality of electricity supply 101 104 - 3

2.08 Fixed telephone lines* 106 103 + 3

2.09 Mobile telephone subscriptions* 88 92 - 4

3rd pillar: MACROECONOMIC ENVIRONMENT 68 54 + 14

3.01 Government budget balance* 62 71 - 9

3.02 National savings rate* 74 70 + 4

3.03 Inflation* 73 69 + 4

3.04 Interest rate spread* 75 50 + 25

3.05 Government debt* 102 89 + 13

3.06 Country credit rating* 75 63 + 12


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Key Drivers

Macroeconomic Management +14

Technological Readiness +12

Market Efficiency for Goods + 9

Institutions (Governance) + 8



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Key Constraints

Institutions (Governance) + 8

Infrastructure - 1

Innovation + 2

Labor Market Efficiency - 2Education

Higher education & training + 2

Science & Math education quality - 2

Quality of primary education -11



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IFC Doing Business Survey

Philippines vs ASEAN* 4-year trend

COUNTRIES 2012 2011 2010 2009

SINGAPORE 1 1 1 1

THAILAND 17

16

12

13

MALAYSIA 18 23 23 20

VIETNAM 98 90 93 92

BRUNEI DARUSSALAM 83 86 96 88

INDONESIA 129 126 122 129

PHILIPPINES 136 134 144 140CAMBODIA 138 138 145 135


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Philippine Competitiveness Ranking

IFC Doing Business Report 2009 - 2012

Indicators2012

(183 economies)

2011

(183 economies)

2010

(183 economies)

2009

(181 economies)

Over-all ranking 136 134 144 140

Starting a business 158 155 162 155

Dealing w/ construction

permits

102 98 111 105

Getting electricity 54 57 - -

Employing Workers - - 115 126

Registering Property 117 109 102 97

Getting Credit 126 116 127 123

Protecting Investors 133 131 132 126

Paying Taxes 136 127 135 129

Trading across borders 51 54 68 58

Enforcing contracts 112 114 118 114

Closing a business 163 161 153 151


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DOING BUSINESS REPORT 2012

(out of 183 economies)

INDICATORSPHL BRN CAM IDN MYS SGP THA VNM

OVER-ALL RANKING 136 83 138 129 18 1 17 98

Starting a business 158 136 171 155 50 4 78 103Dealing with construction

permits

102 83 149 71 113 3 14 67

Getting Electricity 54 28 130 161 59 5 9 135

Registering property 117 107 110 99 59 14 28 47

Getting credit 126 126 98 126 1 8 67 24

Protecting investors 133 122 79 46 4 2 13 166

Paying taxes 136 20 54 131 41 4 100 151

Trading across borders 51 35 120 39 29 1 17 68

Enforcing contracts 112 151 142 156 31 12 24 30

Closing a business 163 44 149 146 47 2 51 142


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Cambodia

China

Indonesia

Malaysia

Philippines

Thailand

Vietnam

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

GDP per capita (US$)

Why does it matter?

Source: IMF 2011


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Indonesia

Malaysia

Philippines

Thailand

Viet Nam

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FDI inflows (US$ million)

Why does it matter?

Source: UN 2011


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2012 PLAN

o Continuous tracking of global reports

o Regional Competitiveness Councils

o Industry Roadmaps

o National Competitiveness Assessment and Plan



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Building

Regional Competitivenessby RUY Y. MORENOPrivate Sector DirectorNational Competitiveness Council


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Building blocks

NationalCompetitiveness

Plan

Local

CompetitivenessCouncils

Industry

Roadmaps Working Groups


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Proposed Structure/ Activities

Data Collection/CompetitivenessIndicators(Academe)

Capability Buildingand Training

Monitoring andEvaluation

OtherProductivity/Competitiveness Programs

(PGS for LGUs,among others)

Regional Competitiveness Council

(Public and Private sectors)


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BUILDING REGIONAL / LOCAL COMPETITIVENESS

Project Goal

Creation of regional or local competitiveness councils whose objectives areto strategically map out how to make their respective regions or

communities more competitive vis--vis selected ASEAN cities.

Specific Objectives

To encourage Regional Development Councils (RDCs) to organize their

own Local Competitiveness Committees and work on the metrics to

serve as a diagnostic tool for assessing their regional/local

competitiveness.

To tap reputable universities per region/province for competitiveness

data collection (research) and conduct of surveys.

To establish linkages with the various public and private keystakeholders and development partners in the regions/provinces for

research, monitoring and evaluation.


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PROPOSED INDICATORS

Assessing Local Economic Development/ Competitiveness

Broad Indicator I: dynamism of local economy

II: responsiveness of LGU to business needs

III: Infrastructure

IV: quality of life

V: cost of doing business

VI: human resources and training

RDC - University Partner (data collection)

&


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OVERALL RANKING & COMPETITIVENESS DRIVERS

CITY OVERALL

RANK

DYNAMISM

OF LOCAL

ECONOMY

COST OF

DOING

BUSINESS

INFRAS-

TRUCTURE

HUMAN

RESOURCES

TRAINING

RESPONSIVE-

NESS OF LGU

QUALITY

OF LIFE

METROPOLITAN GROWTH CENTERS

Cebu City 1 1 2 1 1 2 2

Davao City 2 2 1 2 2 1 1

GROWTH CENTERS

Cagayan de Oro City 1 1 3 2 3 3 3

Bacolod City 2 5 6 7 3 1 2

Zamboanga City 3 7 1 4 3 6 5

Olongapo City 4 10 4 3 3 8 1

General Santos City 5 9 7 1 7 9 3

Iloilo City 6 4 9 8 1 4 7

Mandaue City 7 2 5 6 7 7 9

Baguio City 8 6 10 10 2 2 6

Batangas City 9 8 2 9 7 5 8

Lapu-Lapu City 10 3 8 5 10 9 10

O G & CO SS S


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OVERALL RANKING & COMPETITIVENESS DRIVERS

CITY OVERALL

RANK

DYNAMISM

OF LOCAL

ECONOMY

COST OF

DOING

BUSINESS

INFRAS-

TRUCTURE

HUMAN

RESOURCES

TRAINING

RESPONSIVE-

NESS OF LGU

QUALITY

OF LIFE

EMERGENT CITIES

Dagupan City 1 7 5 1 11 2 5

Tacloban City 2 8 13 10 1 1 5

San Fernando City 3 9 2 3 6 3 1

Ormoc City 4 5 3 4 11 6 5

Puerto Princesa City 5 2 17 6 11 9 3

Naga City 6 3 13 10 2 4 16Pagadian City 7 17 1 8 6 7 13

Legaspi City 8 10 11 7 6 10 8

Tuguegarao City 9 4 7 13 6 5 11

Surigao City 10 15 9 9 11 8 9

Tagum City 11 11 8 2 11 12 17

Angeles City 12 1 15 12 11 15 14

Lucena City 13 6 6 17 2 11 9

Cotabato City 14 14 11 5 2 16 15

Iligan City 15 13 4 15 6 13 3

Butuan City 16 16 16 14 2 14 1

Santiago City 17 12 10 16 11 17 11

Proposed Indicators


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Proposed Indicators1. Dynamism of Local Economy

Total Population

Total Income

Per capita income

Regional GDP

Regional GDP per capita

Regional GDP Growth Rate

2 B i E i


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2. Business Environment

PEZA Approval, number of PEZA-approved facilities inthe city or municipality

Travel advisory, presence of travel warnings from othercountries

ICT Council, presence of ICT council (by city ormunicipality)

Vulnerability to natural disturbances, presence of ICTcouncil (by city or municipality)

Number of crimes solved per capita by city ormunicipality

3 Ri k A t


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3. Risk Assessment

Geophysical

- Number of typhoons in the past 3 years- Number of earthquakes in the past 3 years

- Flood prone areas

Geopolitical

- Per capita Internal Revenue Allotment

- Prevalence rate of diseases (provincial data),

morbidity rate of disease

- Number of tuberculosis cases

- Number of pneumonia cases

- Number of election related violence crimes

(provincial data)

- Number of terrorist acts

4 R i f LGU B i N d


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4. Responsiveness of LGU to Business Needs

Length of time to renew business permits (days)

Cost of renewing business permits (% of annual revenue)

Length of time to register property (days)

Cost of registering property (% of value)

Length of time to secure utility connection (days) Total time spent on administrative matters (i.e., tax and

other payments), days per year

Availability of investment incentives, local investment

code Presence of Local Investment Promotion Office

Presence of Business One-Stop Shop

5 Infrastructure


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5. Infrastructure

Availability of 24 hr electricity

Availability of 24 hr water service Quality of road network

Number of telephone service providers

Number of internet providers

Quality of internet connections

Total number of cars for hire

Travel time to airport

Travel time, access to nearest international airport Travel time to seaport

Travel time to nearest international seaport

Frequency of flights per day

6 Q lit f Lif


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6. Quality of Life

Police to population ratio

Monthly crime rate Doctor to population ratio

Number of hospitals

Number of hospital beds

Number of high schools

Number of colleges/universities

Number of commercial banks

Number of historical, tourism sites Number of hotel rooms (4-star, 5-star)

Number of daily domestic flights (to Manila to Cebu)

Number of daily international flight

7 C t f D i B i


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7. Cost of Doing Business

Electricity cost (P/kwh)

Water rate (P/cu.m.)

Fuel cost (premium, P/liter)

Minimum wage (per day)

Commercial space rental/lease rate, centralbusiness district (P/sqm/month)

Commercial lot value (P/sqm)

Industrial space rental / lease (P/sqm/month)

Industrial lot value (P/sqm)

8 H man Reso r es


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8. Human Resources

Total number of high school and college students

Number of high school graduates per year Number of college, university graduates per year

Number of graduates who earn Licenses, Certification

Percentage of population with college degrees

Number of technical-vocational schools Number of graduate schools

Total number of employees

Unemployment rate

Percentage of Professionals, By Region Number of working age population (ages 15-29, NSO) less

number of graduates from all tertiary education institutionswithin a city's or municipality's boundaries (over total workingage population)


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CAPACITY BUILDING AND TRAINING

Customer Service Excellence for the LGUs/ BPLOs (c/o CIC)Aims to enhance LGUs/BPLOs technical knowledge, professional

attitude, and customer-orientation

Local Investment Promotion (c/o BOI)Appreciation seminar for local executives, line-agencies and private

sector organization representatives on their roles in investment

promotion. It highlights the different investment promotion tools

and strategies that can be used by the different localities to

promote their area as an investment destination

Urban PlanningWith populations growing and resources limited, it is important for

LGUs and regions to properly undertake urban planning for optimal

resource management

MONITORING & EVALUATION


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MONITORING & EVALUATION

Customer Feedback Surveys

Quick-response, self-administered surveys covering one specific topic at a time.First survey covered BPLS and was conducted from Jan 10 Feb 10.

Field MonitoringIn-depth studies to validate survey results and ask follow-up questions

Baseline Data CollectionCollection of basic data before and after programs are conducted in order to

measure progress over time

Enterprise SurveysLarge-scale public opinion surveys conducted through face-to-face interviews

S l i l C i i C i ( CC)


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Sample, Bicol Competitiveness Committee (BCC)

Created on August 26, 2011 (RDC No. 25)Tasked to improve competitiveness in the public andprivate sectors in the region.

Aims to

- improve competitiveness of the LGUs

- ensure complementation of productivity andcompetitiveness programs of the government andprivate sectors.

Bicol Competitiveness Committee


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Functionsa. To monitor the LGUs on selected

competitiveness indicators,

b. To assess productivity enhancing programs of

various agencies,c. To advocate the enrolment of LGUs and key line

agencies on different competitiveness systems, and

d. To propose policy and administrative reforms


Bi l C titi C itt


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Chaired by NEDA

Membership:

7 RLAs

6 PPDCs

7 CPDCs7 private sector representatives

(PCCI Bicol and 6 local chamber of

commerce and industry)27


Proposal to merge RPC RIPC and BCC


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Proposal to merge RPC, RIPC and BCC

Common of objectives, functions andmembership;

To have more focused activities on:

improving competitiveness of theLGUs and government agencies,

increasing productivity level of

private enterprises, and promoting investments that will

create jobs for the Bicolanos.

BCC NCC BPLS Fi ld M it i P j t (Bi l il t )


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BCC-NCC BPLS-Field Monitoring Project (Bicol, pilot run)

Objectives:

Validate results of the recently conducted BPLS in Bicol areas

(Daraga, Tabaco, Guinobatan, Legaspi, Naga and Iriga)

Establish baseline data on BPLS and gather relevant information

Prepare completion report

Implementation Date: March 12-23, 2012

Partners: NCC, academe, BCC, DTI-Bicol, RDC, development partner

Project Mechanics:

NCC and partner universities/colleges conduct fieldmonitoring interview with mayor, BPLO head of LGU and 3 businessmen

from each identified LGU;

Preparation of reports for submission to NCC


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Thank you !!!

E-mail address: [email protected]

www.competitive.org.ph

www.governance.org.phfacebook.com/Compete.Philippines

twitter.com/ncc_philippines

NATIONAL COMPETITIVENESS COUNCIL6/F, 361 Sen. Gil Puyat Avenue, Makati City

Telefax No. 890-4861/751-3404

ncc presentation april 26 2012

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