The Philippines in terms of ranking on doing business remains difficult and atrocious compared with the hundreds of countries around the world according to the latest report of the World Bank’s “Doing Business 2013“.
The country ranked 138th out of 185 countries according to the latest survey done by the International Finance Corporation and the World Bank in regards of processing permits in order to have a business being a legally recognized by the government. The country remains bombarded by the red tape in regards of processing permits to do business.
It takes 161 days of starting a business, among the worst in the world, compared to only a day in New Zealand, 2 days in Australia, 3 days in Canada, and 4 days in Singapore.
It takes 16 procedures in order for a business be legally approved by the government, making it the third worst in the world after Equatorial Guinea which takes 18 procedures and Venezuela which takes 17 procedures.
It takes also 36 days for entrepreneurs in order their businesses be registered, way longer than the world’s leaders of New Zealand which takes only a day for businesses be registered, Georgia which takes 2 days for businesses be registered, and Singapore which takes 3 days for businesses be registered.
It cost 18.4% of the country’s GDP per capita in order for businesses be legally registered that includes legal fees for registration, compared to nothing in Slovenia, 0.2 in Denmark, 0.6 in Singapore, and 1.0 in the United Kingdom.
It also cost 4.8% of the country’s GDP per capita in order for businesses especially foreign to deposit money to pay the paid-up capital requirement as required by our law, compared to none in many countries like our regional peer, Singapore.
I am not surprised with the current rankings of our country in regards of doing business. Many Filipinos have been frustrated on the procedures imposed by the government on the perspective entrepreneurs who wants to generate jobs for millions of unemployed citizens regardless of whom they came from. Our government seems to be procrastinating in their efforts to improve our business climate in our country so that local and foreign entrepreneurs would encouraged to set-up their businesses that would have generated more jobs and more prosperity for the people but instead, these prospective entrepreneurs have been bombarded with the atrocious requirements in order to have their businesses be registered while the government protects the selected elite oligarchs from the floods of competition that would have provide the millions of poor and unemployed Filipinos an opportunity to uplift from poverty and ignorance.
The government officials should stop pandering the needs of the elite oligarchs and let real competition in our economy to work in order to satisfy the needs of the majority Filipino, who installed them through elections, of employment, education, health care, and many others. The government officials especially the elected ones should stop punishing and blocking prospective foreign entrepreneurs, whether large or small from setting-up businesses here that would have created millions of job opportunities like the constitutional prohibition of 100% foreign equity ownership of businesses outside PEZA-accredated zones and let these foreign entrepreneurs to invest 100% from their own capital and ideas and control what they invest to protect rent-seeking dummies.