Following the plummet of the Philippines’ “ease of doing business” rank, the government expressed determination to land a spot in the top 20 percent tier within the next 5 years.
Department of Trade and Industry (DTI) Secretary Ramon Lopez shared the goal in a press conference Thursday, saying that they will still attempt to achieve the target despite it being “ambitious”.
According to him, this is to be accomplished within President Rodrigo Duterte’s term which will be ending in 2022.
In World Bank’s Doing Business 2018 report, the Philippines placed 113th out of 190 countries in terms of the ease of doing business, a drop from 2017’s 99th spot. It was noted by the organization, however, that the current and previous rankings cannot be compared due to revisions in their methodology.
While rankings are important, Lopez, who is also the chairman of the National Competitiveness Council, said that they will be prioritizing obtaining a higher distance to frontier (DTF) score.
He further explained, “If you hit the highest score, you’re up there in the ranking. But even without looking at the ranking, you know that you are providing ease of doing business.”
The DTF, according to the World Bank, is determined on a scale of 0 to 100, with 100 being the frontier which embodies “the best performance observed on each of the indicators across all economies”. A higher score equates to a better performance of the economy. According to The Economic Times, it is a metric used to calculate the ease of doing business.
The Philippines has shown improvement with its 2018 DTF of 58.74 being slightly higher than 2017’s 58.32. However, it trails behind East Asia and Pacific’s average DTF of 62.7.
“It’s time to improve our target”, Lopez voiced.
Story first appeared here.