PH among countries most ready for change

Wednesday / October 9, 2013

 

The Philippines may not be among the richest countries, but it is more prepared for change compared to higher-income economies, a new report showed.

The country was the top performer among lower-middle income countries in the 2013 Change Readiness Index by Swiss audit, tax and advisory firm KPMG.

Globally, the country ranked 18th out of 90 in 2013, up from 38th out of 60 a year ago. It ranked 4th among developing economies and 3rd in Southeast Asia.

This means Filipinos are in a better position to cope with negative shocks as natural disasters and to grab opportunities such as technological or market growth.

Readiness for change, KMPG said, has “significant impact on [a country’s] ability to achieve sustained economic growth and share the benefits of that growth with all of its citizens.”

The Philippines’ best score was in terms of government capability where it ranked 14th. It ranked 23rd in enterprise capability and 26th in people and civil society capability.

The country is “exceeding expectations” within its income category, KMPG said, adding that the Philippines outperformed many countries at higher income levels.

“What this shows is that low or relatively low income is not an insurmountable barrier to enhanced change readiness,” the KPMG said in its report.

This is “an encouraging message for lower income countries with ambitious aspirations,” it added.

The report however noted that the slowdown in the pace of economic reform in the Philippines may impact its readiness for change.

“While the Philippine government appears committed to pushing through reforms, it is impeded by the difficulty in achieving sufficient political consensus to drive further progress,” the report said.

 

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