In the latest Global Competitiveness Index published by the World Economic Forum, the Philippines ranked 87th out of 134 countries.This is a considerable drop of 16 places from last year’s 71st rank.

The survey is topped by Switzerland and followed by the US in close second.

Singapore, Sweden, and Denmark round out the top five. In Southeast Asia, we only bested Cambodia at 110th place. Our neighbors have overtaken us by a considerable length: Singapore No. 3, Malaysia No. 24, Brunei No. 32, Thailand No. 36, Indonesia No. 54, and Vietnam No. 75.

The ranking is based on 12 pillars of competitiveness: Institutions, infrastructure, macroeconomic stability, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market sophistication, technological readiness, market size, business sophistication, and innovation.

The report defines competitive economies as those that have in place factors driving productivity, on which their present and future prosperity is built. In this sense, it is clear that the Philippines lacks mechanisms that will enable solid economic performance in the future.

Our competitiveness is rapidly slipping because we fail in technological innovation, because we make meager investment in basic science, in research and development (R&D), in basic infrastructure. In short, we are failing because our human capital is underdeveloped and our public institutions are weak.

Central to improving our country’s competitiveness is the overall improvement of our education system. The problem is two-pronged: General competence, and specialized excellence.

First, we must address the quality problem that plagues our basic and secondary education because this system is what feeds students into the college level. Our students’ performance in Math and Science are particularly worrisome. In the Trends in International Math and Science Study or TIMSS, our performance continues to be poor: Out of 45 countries, we ranked 41st in Science, and 42nd in Math. We are behind Tunisia and Morocco, and ahead of Ghana and Botswana.

Second, we must put special focus on the way we provide higher education. Universities are the primary venues for cutting-edge research, technology development, critical thinking and creativity. Philippine universities must become the generator of ideas that will allow us to succeed in the wealth-creating fields of science, technology and innovation (STI).

Third, we need a strong technical-vocational program that will help transform the Filipino workforce to become knowledgeable, highly-skilled and adaptable to the demands of the new labor market. The idea is to create a venue for training and practical knowledge so that even high school graduates will have employable skills.

The innovation issue is fundamental to the future of jobs and the economy. It is central to growth, quality of life, and success in the global marketplace. In today’s world where the capacity to innovate decides a country’s success, building competitiveness through education and training should be top priority.

Email: edgardo_angara@hotmail.com Website: www.edangara.com