Global Competitiveness Report
The Global Competitiveness Report is the annual publication prepared by the World Economic Forum, ranking 139 economies in 2010 based on what it calls “pillars of competitiveness”: institutions, infrastructure, macroeconomic stability, health and primary education, higher education and training, goods and market efficiency, labor market efficiency, financial market sophistication, market size, technological readiness, business sophistication, and innovation. In the 2010 report, the Philippines ranked 85th overall but last among the ASEAN-6 (see Figure 51).
Over the last decade, the ranking of the Philippines has been erratic, while Indonesia’s percentile ranking steadily improved from 15th in 2001 to 67th in 2010. The Philippines’ percentile position improved every year for four years since 2004 until plummeting in 2009. Based on the 2010 report, it performed worst in the areas of institutions (ranking 125th), labor market efficiency (ranking 111th), and innovation (ranking 111th). Its strengths were in market size, where it ranked 37th, and business sophistication, where it ranked 60th.