Private Inspiration for Public Innovation Making Growth Happen Conference 16-17 October 2013, World Bank Group

Guillermo M. Luz Private Sector Co-Chairman

About NCC

The National Competitiveness Council was born out of the collective desire of the government and business sector to jointly address competitiveness indicators to:

Upgrade competitiveness rankings

Strengthen industry, agriculture, and service sectors

Create jobs and reduce poverty

About NCC

A public-private sector body tasked to build up

the long-term competitiveness of the Philippines

through:

policy reforms

project implementation

institution-building

performance monitoring

Work Program

Benchmark against key global competitiveness indices

Map each indicator to the agency responsible

Focus on lowest-ranking indicators

Track city competitiveness and key indicators

Working Groups concentrate on specific projects

Link work to Philippine Development Plan, National Budget, Legislative Executive Development Advisory Council, Cabinet Agenda

Metrics and Management

Global competitiveness reports

WEF Global Competitiveness Index

IFC/WB Ease of Doing Business Report

City/Municipality Competitiveness Index

Balanced Scorecard for government agencies and local governments

COUNTRIES 2013

Out of 148 CHANGE

2012-2013 2012

Out of 144 2011

Out of 142 CHANGE

2011-2012

1.SINGAPORE 2 0 2 2 0

2. MALAYSIA 24 +1 25 21 - 4

3. BRUNEI DARUSSALAM 26 +2 28 28 0

4. THAILAND 37 +1 38 39 + 1

5. INDONESIA 38 +12 50 46 - 4

6. PHILIPPINES 59 +6 65 75 + 10

7. VIETNAM 70 +5 75 65 - 10

8. LAOS * 81 - - - -

9. CAMBODIA 88 -3 85 97 + 12

10. MYANMAR* 139 - - - -

(*) – New Economies added for 2013 report

Global Competitiveness Index Philippines VS ASEAN

WEF-GLOBAL COMPETITIVENESS INDEX PHILIPPINE RANKING ( 2011-2013 )

12 PILLARS 2012-2013 CHANGE

CHANGE OVER 3 YEARS

1st pillar: Institutions +15 +38

2nd pillar: Infrastructure +2 +9

3rd pillar: Macroeconomic

environment

-4 +14

4th pillar: Health and primary

education

+2 -4

5th pillar: Higher education and

training

-3 +4

6th pillar: Goods market efficiency +4 +6

7th pillar: Labor market efficiency +3 + 13

8th pillar: Financial market

development

+10 +23

9th pillar: Technological readiness +2 + 6

10th pillar: Market size +2 + 3

11th pillar: Business sophistication - + 8

12th pillar: Innovation +25 + 39

Global Competitiveness Index Philippine Rankings

INDICATORS

2013 Indicators

2012 Indicators

2011 Indicators

2010 Indicators

RED Bottom 20% (118th-148th)

7 (115th – 144th)

8 (113th – 142nd)

21 (111th – 139th)

25

PURPLE Ranked 21 -

40%

(88th to 117th)

33 (86th – 114th)

44 (85th – 112th)

36 (83rd – 110th)

37

GREEN Ranked 41 –

50%

(74th to 87th)

19 (72nd – 85th)

12 (71st – 84th)

17 (69th – 82nd)

20

BLACK Ranked 49%

or higher

(1st to 73rd)

55 (1st – 71st)

47 (1st – 70th)

37 (1st – 68th)

29

TOTAL 114 111 111 111

Ease of Doing Business Philippines 2013

TOPIC RANKINGS 2013 RANK 2012 RANK CHANGE

Starting a Business 161 158 -3

Dealing with Construction Permits 100 101 +1

Getting Electricity 57 53 -4

Registering Property 122 120 -2

Getting Credit 129 127 -2

Protecting Investors 128 124 -4

Paying Taxes 143 136 -7

Trading across Borders 53 56 +3

Enforcing Contracts 111 109 -2

Resolving Insolvency 165 166 +1

Ease of Doing Business Philippines VS ASEAN, ranking per indicator

Country

Starting a

Business

Dealing w/

Construction

Permits

Getting

Electricity

Registering

Property

Getting

Credit

Protecting

Investors

Paying

Taxes

Trading

Across

Borders

Enforcing

Contracts

Resolving

Insolvency

Singapore 1 4 2 5 36 12 2 5 1 12 2

Malaysia 12 54 96 28 33 1 4 15 11 33 49

Thailand 18 85 16 10 26 70 13 96 20 23 58

Brunei 79 135 43 29 115 129 117 22 40 158 46

Vietnam 99 108 28 155 48 40 169 138 74 44 149

Indonesia 128 166 75 147 98 129 49 131 37 144 148

Cambodia 133 175 149 132 115 53 82 66 118 142 152

Philippines 138 161 100 57 122 129 128 143 53 111 165

Laos 163 81 87 138 74 167 184 126 160 114 185

EODB Gameplan

Created in July 2012 after analyzing the Doing Business Report and benchmarking against other economies

Approved by the Economic Cluster of the Cabinet in September 2012

EODB Gameplan

Formed 10 work teams composed of different national and local government agencies, as well as private sector organizations

Conducted validation workshops with each team to come up with reform targets per indicator

EODB Gameplan

Conducted dialogues with national and local agencies and private sector partners

EODB Gameplan

Videoconferences with IFC Washington to discuss progress with analysts

Meetings with Amb. Jose Cuisia and Philippine Embassy team in Washington, DC (who also coordinate with IFC Washington)

EODB Gameplan

Ease of Doing Business Summit, May 2013 - work teams publicly sign off to implement reforms targets

EODB Gameplan

President Aquino issued Administrative Order No. 38 creating an inter-agency task force to initiate, implement, and monitor ease of doing business reforms

o Provides for the inclusion of the reform targets in the

performance-based incentive system of all agencies concerned

Local competitiveness as basic building block for overall national competitiveness

Potential benefits of creating many competitive regions:

o diversification of investment and job opportunities

o creation of new wealth

o growing middle class in different parts of the country

o overall attractiveness of the Philippines as an investment site

Regional Competitiveness

Very little information about the competitiveness of Philippine regions, cities, and municipalities

Created Regional Competitiveness Committees in 15 regions + National Capital Region (Metro Manila) in 2012

Regional Competitiveness

Each committee -

Tracks local competitiveness indicators

Formulates programs to improve competitiveness

Engages in investment promotion activities to attract investors and create new jobs

Regional Competitiveness

Convened all committees in several dialogues in 2012 to construct a framework for local economic development and competitiveness

Regional Competitiveness

Identified a set of indicators for the framework and validated the indicators at the city and municipal levels with the support of USAID-INVEST

Framework to help local government units

oAssess business environment

oDesign reforms

oMap out how to make cities and municipalities more competitive vis-à-vis ASEAN cities

Regional Competitiveness

Regional Competitiveness

Overall Competitiveness – Top 10 Cities

Rank Region Province LGU Score

1 Northern Mindanao Misamis Oriental Cagayan de Oro City 72.09

2 Western Visayas Iloilo City Iloilo City 68.23

3 Central Luzon Pampanga San Fernando City 67.89

4 CARAGA Agusan del Norte Butuan City 63.07

5 Western Visayas Negros Occ. Bacolod City 61.62

6 SOCCSKSARGEN South Cotabato Koronadal 61.27

7 Ilocos Region La Union San Fernando 61.17

8 Central Luzon Zambales Olongapo City 60.63

9 Bicol Region Camarines Sur Naga 60.53

10 NCR Marikina 59.73

Regional Competitiveness

Overall Competitiveness – Top 10 Municipalities

Rank Region Province LGU Score

1 CARAGA Agusan del Sur San Francisco 54.86

2 Central Luzon Pampanga Guagua 54.18

3 CALABARZON Cavite Carmona 53.18

4 BICOL Region Camarines Norte Daet 51.45

5 CALABARZON Cavite General Trias 51.22

6 Central Luzon Nueva Ecija Guimba 50.46

7 Central Luzon Pampanga Mexico 50.18

8 SOCCSKSARGEN South Cotabato Surallah 49.82

9 CALABARZON Rizal Taytay 49.19

10 CARAGA Agusan del Sur Prosperidad 48.92

Balanced Scorecard method applied to selected national agencies and local governments

Open conference 2X a year to create trend for Islands of Good Governance

Multisectoral Governance Councils per agency composed of private sector and non-government representatives to advise head of agency (“independent directors”)

Balanced Scorecards

P STRATEGIC OBJECTIVES MEASURES BASELINE ACTUAL TARGETS

2009 2010 2011 2013 2016

Social Im

pact

A Increased mobility and total connectivity

1 % of National Arterial Road Network paved 86% 91% 94% 98% 100%

2 % of bridges along national arterial roads made permanent

93% 94% 95% 97% 100%

3 Km of arterial roads with an International Roughness Index (IRI) of 3

NA NA 1,400 4,100 6,600

B Safe Environment

4 Percentage of flood protected area (identified major and principal river basins)

19% 20% 21% 25% 30%

5 % of roads and bridges compliant with road safety standards

41% 45% 51% 64% 86%

ES C Transparent and accountable organization

6 Bantay Lansangan Road Sector Report Card Rating C NA C+ B B+

Pro

cesses

D Engage the public and business partners in governance

7 Resolution of valid stakeholders complaints, inquiries and concerns

60% 60% 80% 85% 95%

E Institutionalize improved processes

8 Number of ISO Certified Offices 0 0 0 6 11

F Simplify and innovate processes

9 Absorptive Capacity 80% 84% 86% 88% 90%

10 Percentage Compliance to prescribed documents processing timelines

94% 92% 95% 96% 98%

Reso

urce

Stew

ardsh

ip

I Optimize available resources

15 Percentage of adherence to programming criteria based on existing planning applications

50% 50% 60% 80% 90%

16 Percentage of projects completed within time and budget

55% 55% 60% 70% 80%

J Promote PPP investments 17 Length of (Constructed) Expressway (km) 220 286 326 394 518

Peo

ple

G Nurture a corporate environment with a shared mission

11 Internal Stakeholders Approval Rating N/A 65% 75% 85% 95%

12 External Stakeholder Perception Rating N/A N/A 75% 80% 90%

H Uphold professionalism based on merit and performance

13 Composite Performance Index 60% 60% 65% 75% 85%

14 Percentage of accredited personnel in selected occupational groups

55% 55% 60% 70% 80%

GOVERNANCE SCORECARD

GLOBAL COMPETITIVENESS PERFORMANCE

Report Change 2013 vs 2012 Change over 3 years

World Economic Forum Global Competitiveness Index

+ 6 + 26

IFC/WB Ease of Doing Business Report

0 - 2

IMD World Competitiveness Report

+5 +3

Transparency International Corruption Perceptions Index

Not available until December 2013

+24

Economic Freedom Index +10 +18

Global IT Report (WEF) 0 0

Travel and Tourism Report (WEF)

+12 +12

Global Innovation Index +5 +17

Moving in the right direction but still have much work ahead of us

Public-Private Collaboration works

Biggest challenges – Institutionalization and the permanence / irreversibility of reform

Summary

/Compete.Philippines @ncc_PH gm.luz@competitive.org.ph