Much has been written exulting the PHILIPPINES as THE hotspot when it comes to outsourcing business globally. Of course, this is only one the reasons why the country has earned its place on the business world. Recently, the Philippines jumped 6 notches higher in its ranking in the 2013 edition of the Global Competitiveness Index, marking the strides the country has made to improve productivity levels. The report reads:
“Philippines ranks 65th in Global Competitiveness Index Compared to its neighbours in Southeast Asia, the Philippines ….ranked higher than Vietnam (70th), Cambodia (88th), Laos (81st). The Philippines, which was 40 places behind in 2006, is now ahead of India (60th). Its rank differential with China is 29, up from just 8 in 2006. The index benchmarks the 148 countries against 12 pillars of competitiveness, which the WEF defines as “a set of institutions, policies, and factors that determine the level of productivity of a country.” The WEF stressed that the Philippines has leapfrogged (emphasis ours) over the past years in the institutions pillar (79th).”
Countries, like companies, compete. Nations compete for investments, trade, trade in services, and tourists. This focus on national competitiveness has been increasingly reinforced by global competitiveness rankings published, on a regular basis, by a variety of institutions.
These are comprehensive reports that benchmark the performance and attractiveness of a nation in the economic sphere.
Global rankings are important for two reasons. First, they are a set of diagnostic tools which highlights the strengths a country can build on, as well as the challenges that must be overcome, in order to become more globally competitive.
Second, investors pay close attention to the indicators and use the information to assess a country’s standings across a variety of metrics.
At the core of productivity is the quality of the human resources of the nation. This is greatly influenced by the quality and standard of education a country provides. Investment must be made in the proper education and training of the workforce to prepare them for jobs in industries. This where the Philippines has a competitive advantage over most of its competitors. It realizes that continuous professional training is imperative to keep its human resources at par with global standards.