back to reality

Posted by Analyse at 6:40 PM

Wednesday, January 19, 2005

Among the list of barriers preventing foreign investments in the Philippines, macroeconomic instability, corruption and poor infrastracture topped the list. Read more.

Any thoughts?

5 comments:

pendrifter said...

Macroeconomic instability and poor infrastructure? They're the result of long-term corruption too. If that problem can't be reduced drastically, needed infrastructure won't be built, budget deficits will be even worse, and foreign investors will continue to shun the country.

mell ditangco (this is my pseudonym) said...

what we see in the macroeconomic level is a mere symptom of our real problems.

if you have the patience, read this post at my blog...

here is the link: http://femba.blogspot.com/2004/12/corruption-and-capital-markets.html

Here is an excerpt...

Corruption and the Capital Markets
A corrupt elite begets corrupt institutions (e.g. government, church, academia, and business). Corrupt institutions produces a culture of distrust. A culture of distrust results in a dysfunctional capital market, which only serves to stifle entrepreneurship amongst the individuals that are not part of the establishment.

The bottom line is there needs to be a functioning social control mechanism that will protect people from each other through the creation of effective laws and the subsequent consistent enforcement of it; so that an environment of trust can be established in society.

Trust is the key to a thriving economy. Trust is a vital ingredient to a healthy capital market.

Anonymous said...

Hi Analyse,

thanks for dropping at my site. You did not leave me your email.

At any rate, you have a great site. Just a short comment. I think the main reason for low investment is ALSO low productivity and skills / high cost of doing business in the Philippines which we need to address for our people.

china is as bad in corruption in the philippines, but they are getting a lot of investments because there is peace and order and cost of doing business ( so far -- that will soon change) is low.

Anonymous said...

Hi Analyse,

thanks for dropping at my site. You did not leave me your email.

At any rate, you have a great site. Just a short comment. I think the main reason for low investment is ALSO low productivity and skills / high cost of doing business in the Philippines which we need to address for our people.

china is as bad in corruption in the philippines, but they are getting a lot of investments because there is peace and order and cost of doing business ( so far -- that will soon change) is low.

wilson ng
www.bizdrivenlife.net

Anonymous said...

Trivia, exactement!

Mell,

In fact we need an honest government e.g. honest leaders, which could eventually change the bad reputation we project in the competitive business world and eventually change the visible façade that we reflect vis-à-vis the potential investors. Filipinos are known to be hard workers, effective employees..so all they need are jobs to prove their worth.

Wilson Ng,

Thanks for dropping by too. i highly appreciate your blogs.

I agree on the high cost of doing business in the Philippines but not on the low productivity and skills though. Given the means to work well, filipinos are competitive. Investors are also largely stopped by terrorism – in the recent years, this is the main cause why investors backed out from the Philippines – besides, what will they do with added profits if they’re not in security?

Another inviting characteristic of China is its population. Logistic-wise, such move is in both ways beneficial – suppliers’ closeness to its target market – not forgetting of course their growing purchasing power.

Analyse