Philippines economic freedom ranking jumps 10 places

This was according to the editors of the 2013 Index of Economic Freedom, jointly released by Washington DC-based The Heritage Foundation and The Wall Street Journal.

Based on the latest annual index, the 19th since it first came out in 1995, the Philippines scored 58.2 out of 100 points. Such a score keeps the Philippines in the category of “mostly unfree” countries or those within the range of 50 points to 59.9 points.

“[The] score is 1.1 points higher than last year, with notable improvements in investment freedom and freedom from corruption outweighing a decline in business freedom,” the editors said in a statement.

They added that such score was below the global average of 59.6, but noted that the Philippines’ improvement provided contrast to the world’s 0.1 point gain. 

“The global advance toward economic freedom has ground to a halt,” they said. “Since reaching a global peak in 2008, economic freedom has continued to stagnate.”

As for the Philippines, they noted that the government has pursued a series of legislative reforms toward an improved business environment that encourages broader-based job growth.

Still, the editors said Philippine institutions needed deeper commitment to reform. 

“Although perceived level of corruption has declined in recent years, more effective anti-corruption measures need to be institutionalised,” they said. “The inefficient judiciary remains susceptible to political interference and does not provide strong and transparent enforcement of the law, undermining prospects for long-term economic development,” they added.

The index takes into account 10 criteria, including property rights, freedom in trade and financial freedom – for which the Philippines’ record showed no change from the previous year. 

Hong Kong remained the “freest” economy for the 19th time with 89.3 points. Mainland China placed 136th while Taiwan ranked 20th.