investment attraction

Is the Philippines a Late Bloomer?

“Whenever we find a late bloomer, we can’t but wonder how many others like him or her we have thwarted because we prematurely judged their talents. But we also have to accept that there’s nothing we can do about it. How can we ever know which of the failures will end up blooming?”
Malcolm Gladwell

In the Philippines, children trooped to school this week as yet another academic year began. It seemed like any other year, with the rising cost of private education and the shortage of classrooms and teachers plaguing the public system giving concern to parents.

There was one significant difference though: the country became one of the last in the region to adopt a K-12 (kindergarten to Year 12) structure. The additional two years to secondary education and one year of kindergarten meant that the educational system in the country has finally caught up with the rest of the world.

It is hoped that with this reform, the country would be able to lift the academic test scores of its pupils which have been lagging behind that of neighbouring states. Previously it was hypothesised, educators tried to cram in too much content within the span of ten years. It is hoped that allowing more time to learn the new national curriculum would produce better results.

But apart from giving students the tools to succeed in life, there is a number of policy areas in which the Philippines has lagged behind but could now be catching up. Reproductive health and family planning is an example of where the country has remained staunchly intransigent even when there has been a near universal consensus arrived at around the world on this issue. The long-delayed reproductive health bill that has languished in Congress for over a decade may finally pass.

In the area of peace and order and social justice, the country has one of the longest running communist insurgencies in the world. Its land reform program whose implementation has taken decades longer than expected, may finally be completed with the resolution of the Hacienda Luisita case.

After a chequered history, the revised sin tax legislation may finally pass, giving government finances a boost and allowing credit rating agencies to give a positive outlook for the country, which in turn lowers the cost of borrowing for the government. Having been a net debtor nation to the rest of the world, the nation’s ability to shore up international reserves through balance of payments surpluses now make it a net creditor.

After being the consistent laggard of Southeast Asia when it comes to attracting foreign direct investments, an investment pipeline involving infrastructure projects may soon reverse its fortunes. With growth slowing in the BRIC economies, the US and the EU, a first quarter growth of 6.4% year-on-year making the average for the past two years 5.6% make the country a stand-out along with Indonesia and Turkey (see video below for an explanation).

With employment growing and inflation easing, some are beginning to wonder if the Philippines is finally getting its act together. Two thousand and twelve could be a “breakout” year for the country.