Competitiveness of Philippines in global map Essay

0.5% of world-wide GDP sh be implies Philippines is really an insignificant player in world economy in terms of economic output, and 95 millions creation, about 1.5% of 7 one million million million world population, means electric current productivity level is only one third of world average. This is a typical characteristic of develop Asian countries, i.e., mettlesome population but low economic production output. However, even if only canvass with average of developing Asian countries, including China, India, Indonesia, Malaysia, Pakistan, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam, the development of Philippines GDP per capita is still significantly lagging merchantman in the past 20 geezerhood, and the gap is continuously widen since 2006.Philippines is at the stage of transitioning from factor control economy to efficiency driven economy. What is promising for Philippines is that the global ranking of competitiveness among 144 countries is improving for the at last three year, 85 75 65, and indices Macroeconomic environment, Market size are even among the shed light on 40. The indices enter Labor market efficiency, Infrastructure, Health and primary education, Institution and pattern are area lagging behind.From the survey data of The most problematic factors for doing business in Philippines study g everywherenment corruption, bureaucracy and policy instability are the most problematic issues businessmen are facing, opposite than inadequate infrastructure much(prenominal) as road, stable supply of electricity etc.I. Trade and outside(prenominal) Direct Investment in the Philippines Historically, the Philippines have been an important centre for commerce for centuries for its important location in south east Asia. Since 1980s, the Philippines have opened their economy to foreign markets, and established a network of quit trade agreements with several countries. Some Philippines Import and Export Indicators and Stati stics are list below Total value of exports US$50.72 billion Primary exports commodities semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits Primary exports partners US (17.6 portion of total exports), Japan (16.2 percent), Netherlands (9.8 percent), Hong Kong (8.6 percent), China (7.7 percent), Germany (6.5 percent), Singapore (6.2 percent), South Korea (4.8 percent) Total value of imports US$59.9 billion Primary imports commodities electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic Primary imports partners Japan (12.5 percent of total imports), US (12 percent), China (8.8 percent), Singapore (8.7 percent), South Korea (7.9 percent), Taiwan (7.1 percent), Thailand (5.7 percent)The United States is one of the Philippines top occupation partners. In 2010, according to US Department of Commerce data, trade mingled with th e Philippines and US amounts to US$15.4 billion. US is also the Philippines largest foreign investor, with foreign direct enthronement close to US$6 billion at the end of 2009.As of 21st century, the sphere is member in several international trade organizations including the APEC, ASEAN and WTO, chthonic the new Aquino administration, the government plans to open up the farming to more foreign investment in industries such as business processing operations, mining and tourism. However, this move may be hindered by restrictions such a prohibition of foreign ownership of land and reality utilities. Also foreign investment was also fix by the financial crisis in 2008-2009 period, historical foreign investment data, breakdown by industry and country are listed belowNet inflows of foreign direct investments (FDI) to the Philippines for the first two months of 2012 were $850 million, three times higher(prenominal) than the $335 million during the same period in 2011, showing a strong recovery of the foreign investment in Philippines.II. Basic program line SystemThe former basic education system of the Philippines is composed of 6 old age of elementary education starting at the age of 6 or 7, and 4 years of high school education starting at the age of 12 or 13. In this system, high school education is not compulsory. A formal public education system structure is show belowParticipation rate for elementary school in 2009 is 89.43%, go up to 89.89% in 2010. As for secondary school, 2009 is 59.86%, go up to 61.26% in 2010. For Kindergarten, 1.65 million children enrolled in 2010, confederation rate of 75.72%, grow to 2.04 million, participation rate of 91.67%, in 2011.These numbers are not impressive even compared to Asian developing countries. As the country need to improve overall productivity, higher quality human resource is a must(prenominal) pre-requisite, more resource allocation to education is in top priority list of Philippines government. Since June 4, 2012, Department of Education started to implement the new K-12 basic educational system, which includes the new curricula for all schools including one year of kindergarten(for 5 years old), 6 years of primary education, 4 years of junior high school and 2 years of senior high school. In this system, basic education is now compulsory.Program implementation in public schools is being done in phases starting SY 20122013. Grade 1 entrants in SY 20122013 are the first cud to fully undergo the program, and current 1st year Junior High School students (or Grade 7) are the first to undergo the enhanced secondary education program. First cohort of K to 12 division 6 and Grade 12 will graduate in 2018.III. nation and WorkforcePopulation 103,775,002 (July 2011 est.) get on with group 0-14 years 34.6% (male 17,999,279/female 17,285,040) 15-64 years 61.1% (male 31,103,967/female 31,097,203) 65 years and over 4.3% (male 1,876,805/female2,471,644) (2011 est.) Population growth rate 1.8 73% (2011 est.)Birth rate 24.98 births/1,000 population (2011 est.)Death rate 4.98 deaths/1,000 population (July 2011 est.)Urbanization urban population 49% of total population (2010) Major cities population MANILA (capital) 11.449 millionRelatively unsalted population, overdue to high birth rate, is one of the key force that push Philippines economic growth. This means sufficient young labor force supply to industries and also a big consumer market demand for young people.It is estimated that between 9.5 million to 12.5 million Filipinos work or reside abroad, these Overseas Filipino Workers, or OFWs, constitute 11% of the total population. In 2012, the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, expects official remittances from OFWs coursed through banks and agents to grow 5% over 2011 to US$21 billion, but official remittances are only a fraction of all remittances. Remittances by unofficial, including illegal, channels are estimated by to be 3 0 to 40% higher than the official BSP figure. OFW remittances represent 13.5% of the countrys GDP, the largest in proportion to the domestic economy.Philippines is considered having a highly skilled labor force, proficiency in English, and a constant stream of college-educated graduates entering the workforce. This attracts many foreign companies to set up operation here. scratch one of the fastest growing industries in the country, Call center, as example, Call centers began in the Philippines as supererogatory providers of email response and managing services, these have industrial capabilities for almost all types of customer relations, ranging from travel services, technical support, education, customer care, financial services, and online business-to-customer support, online business-to-business support. Due to its less expensive operational and labor costs, highly skilled labor force, the Philippines is exit India as the largest call center hub in the world.Reference1. ma n Economic Forum. 2012. Global Competitiveness Report_2012-2013. ONLINE in stock(predicate) at http//www.weforum.org/reports. Accessed 25 November 12. 2. Economy Watch. 2012. Philippines Trade, Exports and Imports. ONLINE usable at http//www.economywatch.com/world_economy/philippines/export-import.html. Accessed 25 November 12. 3. Department of Trade and Industry, Philippines. 2012. Total okay Foreign Direct Investments 1996-2009. ONLINE Available at http//www.dti.gov.ph/dti/index.php?p=3. Accessed 25 November 12. 4. Slideshare. 2012. The State of Basic education. ONLINE Available at http//www.slideshare.net/arangkadaph/state-of-education-in-the-philippines-2012. Accessed 26 November 12. 5. Department of Education, Philippines. 2012. The K to 12 Basic Education Program. ONLINE Available at http//www.deped.gov.ph/default.asp. Accessed 26 November 12. 6. World Bank, Human Development Department, 2010. Philippines Skills Report, Skills for Labor Market in the Philippines, Report No. 50096-PH, March 2010. 7. Youtube videoPopulation in the Philippines, 2012. Accessed 26 November 12. Available at http//www.youtube.com/watch?v=YatkDHzahWw&feature=relmfu. Filipinos Working abroad, 2012. Accessed 26 November 12. Available at http//www.youtube.com/watch?v=At1OVpefZus&feature=relmfu. World Call Center Capital, 2012. Accessed 26 November 12. Available at http//www.youtube.com/watch?feature=endscreen&v=kFBgauGCOEQ&NR=1,