Yesterday, I read an article through the Business Insider website written by Simon Black of Sovereign Man featuring the economic miracle of Georgia, a small country with historical significance, sandwiched by giant neighboring countries of Russia and Turkey.
That article states the economic reforms done by the recent government of Georgia led by Mikheil Saakashvili like easing the cost-of-doing business to the level of developed countries, implementing flexible labor laws that made hiring and firing employees easier, cutting the tax rates to the level of most competitive countries like Singapore, and many others.
Free-market economic reforms makes Georgia among one of the most competitive countries not just in Caucasus but for the entire post-Soviet countries. Free-market economic reforms encourages foreign investors to invest in Georgia without much risks of red tapping and other constricts which stimulates economic growth there as more Georgians have an option for employment at home and improves the infrastructure which is vital for Georgia to go forward in the years to come.
Georgia’s economic reform should be the inspiration among the leaders of the Philippines to enact a necessary economic reforms in order to alleviate the poverty problem like more employment opportunities at home, to become more economically competitive with the rest of the world, to improve our vital economic infrastructure, and to reduce the endemic problem of corruption at all levels in our society.
The Philippines has no reason not to reform economically as our country has enough natural and human resources to use in order to compete with the rest of the world in economic terms. The problem on why our country is not competitive economically is because of our protectionist laws (stipulated to our constitution) that constricts further economic growth like limiting potential foreign investors to invest to only 40% in establishing or acquiring a firm in contrast in other countries where foreign investors are allowed to invest 100% from their own capital without a necessity of a local partner to tap 60% or something unlike here, inflexible labor laws that limits further job creation like prohibiting foreign citizens to practice their respective professions and difficulty to fire inefficient employees, rampant red tape and corruption in the government workplace which further rises the cost-of-doing businesses here in our country especially among foreign investors, outdated infrastructure and educational system that needs further investment. These constricts should be going to address by our leaders if we want to have an economy that is a prosperous, a competitive, and a sustainable in relative with the rest of the world.