The National Competitiveness Council (NCC) announces its "five-star projects" that it believes could help improve the country’s decline in the international ranking for competitiveness.

Ambassador Cesar Bautista, co-chairman of the National Competitiveness Council identified the five-star projects: An integrated logistics infrastructure master plan for Mega Luzon (Region 3, NCR and Region 4A) towards world-class supply chain capability; development of local government
unit (LGU) "sparkplugs," a streamlined business permits and licensing system; use of a corporate governance scorecard rating system on government agencies; an online updating system in public finance management process; a faster discharging process for imports and exports; a Process Monitoring System for appeals or complaints addressed to the Malacañang; an IT system which tracks cases filed with the Office of the Ombudsman; and the drafting of a strong Investors Assistance Process.

Bautista said the “five-star projects” is in response to the results of the Institute for Management and Development (IMD) World Competitiveness Yearbook 2009 released by the Asian Institute of Management (AIM) where the Philippines ranks 43rd out of 57 countries studied.

From 40 of last year, the Philippines has marginally skid three notches, but considerably, it is better
in comparison to the rankings of Taiwan, Greece, Ireland and Spain among others, which dropped by 5 to 10 slots.

The World Competitiveness Yearbook measures economic performance, government efficiency, business efficiency and infrastructure – several factors affecting overall efficiency of a country.

A top priority among these projects is the call for LGUs to serve as economic "sparkplugs" by assisting local establishments on "sunrise" or up and coming industries such as Agri-Business, Tourism, Information Technology-Enabled (IT-E) Services, Mining, Manufacturing, Health and Wellness, and Supply Chain Logistics to become more productive. The NCC hopes to drive 7% per annual economic growth if their target of 120 sparkplugs will be established this year.

Bautista stated in a report that 85 LGUs are working together with business establishments at present. He said a public-private partnership is crucial in improving the country's overall competitiveness.

At the end of the day however, Bautista affirms productivity can really ascertain whether a nation is globally competitive or not.

"The real measure of competitiveness is in the productivity of firms. This is consistent with the principle that 'nations do not compete; companies do.' The government's role then, is to provide the right environment for these businesses to grow, flourish and expand," says Bautista.

In addition, Bautista identifies the six areas of productivity in reference to the Porter Diamond Model of the Harvard Business School - competitive human resources, management expertise in both public and private offices, effective access to financing, upgraded infrastructure and transport network, reduced transaction costs and improved transaction flows, reduced energy costs and secure supply of energy. (BCM)