Philippines 4th in the World's Worst Countries for Business

Doing Business in the Philippines

Though this is not new to most Filipinos, the report of the World Bank should serve as a wake up call for the government to look into the existing laws and regulations of government agencies and local government units (LGU's). This might be one of the major factor why many foreign investors shun doing business in the Philippines despite the effort of the Aquino government.

The World Bank's "Ease of Doing Business" study includes 183 countries. In the CNBC report, they come up with the 10 Most Worst countries for doing business. The countries were ranked based on a lot of factors such as ease of starting a business, paying taxes, getting construction permits, investor protection laws, and other factors.

The world's worst countries to do business with also included some economic superpowers. Below are the ranking from the countries included in the top 10.

1. Venezuela
2. Ukraine
3. Algeria
4. Philippines
5. Nigeria
6. India
7. Indonesia
8. Brazil
9. Russia
10. Argentina



Reasons why the Philippines is included in the Top 10 of the World's Worst Countries to do Business and why we are on the top in the south East Asia. Qoutes from the CNBC report.

Philippines

2010 GDP: $199.6 billion
2010 FDI: $1.7 billion

The Philippines is the lowest ranked Asian country on the list of the most difficult places to do business in. It attracted just 2.5 percent of the $76.5 billion of foreign direct investment that flowed to the 10 members of the Association of South East Asian Nations (ASEAN) in 2010.

Despite having massive untapped mineral wealth, a key geographical location between Southeast and North Asia and a large, growing English-speaking population, the country has fallen behind its neighbors in economic growth.

Foreign businesses are wary of the Philippine's unstable legal system, violence, and bureaucracy. Its ease of doing business ranking from the World Bank fell a further two spots this year from 2010. The country also ranks among the lowest when it comes to starting a business, and resolving insolvency, with the latter taking more than five and half years, compared with an average one year and seven months in OECD countries.

Last month, Philippine President Benigno Aquino made trips to the U.S., China, and Japan to push for investments, as well as to send a message that things are changing in the country, after two previous administrations were dogged by corruption allegations. Aquino's trip to China resulted in $7 billion to $9 billion of potential investments.

The Philippines also jumped 10 places to 75th in the World Economic Forum's global competitiveness index this year.

Philippine lawmakers should take action on this. They could help, by proposing new legislations that would help new investors, filipinos or foreign businessmen. Instead of proposing laws that would change the names of public places, such as naming EDSA to former President Corazon Aquino, or congressional investigations that are only used for personal gains, look at the deeper problems of the Philippine economy.

The government's effort to go after corrupt officials is just the tip of the iceberg. There are still so many things that they must do to improve the business climate in the Philippines.

President Gloria Arroyo Arrested for Electoral Sabotage

Former President Gloria Arroyo is now under hospital arrest after a regional trial court issued an arrest warrant. Representatives from law enforcement agencies went to St Luke's Medical Center to serve the arrest warrant where the former President is confined due to her medical condition.



The Commission on Election rushed to the court today in filing the electoral sabotage charge against Rep. Arroyo. The former president is accused of rigging the 2004 Presidential Election. Election officials and other witnesses accused the former president of masterminding the 12-0 win in Maguindanao.

Meanwhile, The Supreme Court maintained its stand to enforce the TRO which is supposed to allow the Arroyo couple to leave the country. The highest court still voted 8-5 in rejecting the petition of the DOJ. In addition, the SC instructed Justice Secretary de Lima to explain within 10 days why she must not face in contempt. The Supreme court believes that de Lima refused to follow the order of the SC. She might face a fine and a possible imprisonment of 6 months.

Currently, the former President is guarded by police officers and is barred from leaving the hospital. Taking of finger prints and mug shot photos is scheduled on Saturday at the hospital.

The camp of the former President has yet to give statement on her arrest. It is not also clear if the former President will stay in the St Luke's Medical Center or will be brought to a Quezon City detention cell if her condition improves.

President Arroyo Back to Hospital after Failed Attempt to Leave the Country

President Arroyo held at the airport despite TRO

The Bureau of Immigration prevented former President Gloria Arroyo from leaving the country Tuesday night at the Ninoy Aquino International Airport Terminal 1. They were expected to board the Dragon Air flight at 8:50 pm but was later told by the BI officials that they can't leave the country despite the issuance of the TRO by the Supreme Court. The former President was forced to go back to St Luke's Medical Center.

Earlier that day, the Supreme Court decided to allow the former President to exercise her freedom to travel and seek medical treatment abroad. Some of the conditions set by the highest court include posting of P2 million bond, appointing a lawyer that will receive subpoenas and will represent them in court proceedings, a call or visit in the Philippine embassy where they are expected to seek medical treatment.

Justices Voted for and Against the TRO

The justices that voted for the issuance of the TRO were Chief Justice Renato Corona, Justices Presbitero Velasco Jr., Arturo Brion, Diosdado Peralta, Lucas Bersamin, Roberto Abad, Martin Villarama, and Jose Perez

Five justices who opposed the decision were Senior Justice Antonio Carpio, Assoc. Justices Maria Lourdes Sereno, Bienvenido Reyes, Estela Perlas-Bernabe, & Jose Mendoza. Two justices were on leave.

The 8-5 decision made the Arroyos decide to immediately comply with the conditions and booked several flights to Singapore. However, the DOJ Secretary Leila de Lima maintained their stand that the Arroyos could not leave the country because  they have not receive a copy of the TRO and they will still contest the ruling of the highest court.

Debate on the Legality of Watchlist Order and Dishonor of the SC Decision

Meanwhile, the spokesman of the Supreme Court, Justice Midas Marquez argued that the TRO is already in effect and executory. This now leads to various sentiments and opinions whether the government is now acting beyond its power.

The camp of the former president will file a case in court citing in contempt the Secretary of Justice for not honoring the TRO. Other constitutionalists says that this could lead to constitutional crisis. Pro and anti Gloria have different opinions on this issue. Others said that the government should follow the order of the supreme court while others hails the DOJ for taking a hard stand on the case.

The case of plunder, electoral sabotage and cases have yet to be filed in court against the Arroyos. They are still in the preliminary investigation. If the former President leaves the country it will be difficult for the administration to put her in jail.

Political Asylum for Former President Gloria Arroyo

Political Asylum for President GMA

The alleged political asylum application of former President Gloria Macapagal Arroyo became a hot issue after the government refused to grant the former president a chance to be treated abroad. The PNoy administration feels that the former president may not return to the Philippines if allowed to travel abroad. Congresswoman Gloria Arroyo is facing so many charges but these are not yet filed in courts. Among the many list of possible charges that may be filed against the Arroyo's are plunder and electoral sabotage.

The Arroyo camp denied any application for political asylum in the Dominican Republic. This was also confirmed by some foreign officials of the said country. Though, the Secretary of Justice Leila de Lima did not confirm that there is, she still talk to the media about the issue.

According to a legal expert, the continued persecution of the present government of the Arroyos will make it easier for the latter to seek political asylum. If the cases will finally go to courts, President GMA had to take this as a last resort.

President GMA already avoided the US as a possible country for her treatment because she knows that there is a strong extradition treaty between the Philippines and the US. She opted for European countries like Italy, Spain and UK. Other countries also emerged as a possible destination of GMA for her treatment. But critics believe that she is not seeking treatment but want to evade the charges that will be filed against her.

Since the Dominican Republic denied any offering of political asylum to the former President, what other countries do you think are willing to cuddle the former President.

Lets take your stand on this. List the countries in the comment section.